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Sep 30, 2023
W. R. Berkley Q3 2023 Earnings Report
W. R. Berkley's Q3 2023 net income increased, driven by strong underwriting profits and record quarterly net investment income.
Key Takeaways
W. R. Berkley Corporation reported a 45.7% increase in net income to $334 million for the third quarter of 2023. The company's operating return on equity was 21.7%, and the return on equity was 19.8%. Record net investment income of $271 million was driven by a 59.3% increase in the core portfolio. Net premiums written grew 10.5% to $2.8 billion.
Operating return on equity and return on equity were 21.7% and 19.8%, respectively.
Net investment income reached a record $270.9 million, driven by a 59.3% increase in the core portfolio.
The current accident year combined ratio before catastrophe losses of 2.3 loss ratio points was 87.9%.
Net premiums written grew 10.5% to $2.8 billion.
Forward Guidance
W. R. Berkley anticipates the higher interest rate environment will continue to increase investment income. The company remains optimistic about the remainder of 2023 and the foreseeable future.
Positive Outlook
- Anticipate higher interest rates continuing to increase investment income.
- Expanding in areas likely to provide attractive risk-adjusted profitability.
- Strong underwriting profits.
- Effective capital management.
- Decentralized operations and entrepreneurial culture.
Challenges Ahead
- Cyclical nature of the property casualty industry.
- Impact of significant competition, including new entrants to the industry.
- Long-tail and potentially volatile nature of the insurance and reinsurance business.
- Investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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